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New UK flagship Green Deal policy for energy efficient homes creates confusion

But there are warnings and criticisms emerging already with most concerns centred on people being able to understand what they can and can’t do under the flagship policy.

Under the deal a home owner or tenant can make energy saving improvements including insulation, heating, draught proofing, double glazing, solar panels and wind turbines and borrow the money which is then paid back over a number of years via their energy bill.

The person who pays the electricity bill pays the money back so if you’re a tenant in a rented property, you’ll be paying back the costs, not the landlord. This is because the tenant can expect to benefit from lower energy costs.

People need to choose a Green Deal provider to carry out the work and sign a contract which sets out what work will be done and how much it will cost. The work is paid for via monthly instalments through your electric bill. You can change electricity supplier, but only if the new supplier is participating in the Green Deal.

If you move into a property with a Green Deal, the landlord or seller must show you a copy of the Energy Performance Certificate which will explain what improvements have been made and how much you’ll need to repay.

If you’re a landlord, you must get your tenant’s permission before you sign up, and if you’re a tenant you must get your landlord’s permission to sign up.

Kim Vernau, chief executive officer of new homes insurance provider BLP Insurance, said there is a lot of confusion. ‘Whilst the ultimate objective of the Green Deal is laudable there is a great sense of confusion surrounding the policy. Indeed, the Government’s omission to make further predictions on the number of households likely to benefit from the scheme, coupled with no indication of how much carbon is actually likely to be saved, has done little to stem doubts,’ he explained.

The Green Deal needs to involve more small, local builders according to the Federation of Master Builders (FMB). Just over a quarter, 27%, of small to medium-sized construction firms are planning to get involved according to a  recent survey by the FMB, but many said the application and accreditation process was overly complicated, while house holders were unaware of the potential benefits because of a lack of positive publicity about the scheme.

‘Trusted local trades are ready and willing to help homeowners fit energy saving measures such as double glazing and insulation. However, many have expressed frustration that it is not easy for smaller firms to get involved in Green Deal work, and that there hasn't been a marketing campaign to explain to house holders what the Green Deal is all about,’ said Brian Berry, chief executive of the FMB.

‘People want to use their local builder to have energy efficient improvement work carried out, because they know them and have used them before. But the scheme has been designed so large numbers of small firms are excluded because of the significant costs involved in offering Green Deal finance directly to home owners. Instead local firms will have to find a large finance provider to work with, rather than getting started on work which would boost the economy and help home-owners save money on their fuel bills,’ he explained.

‘We welcome the Green Deal because in principle it is good for the environment and great for the economy, but without more support, training and publicity the Government risks this policy becoming a damp squib,’ he added.

The National Landlords Association (NLA) is reminding all private residential landlords to familiarise themselves with the Green Deal and begin making energy efficiency improvements to all relevant properties.

It says that after 2016, landlords will be unable to refuse a tenant’s reasonable request for Green Deal improvements. Furthermore, under the new legislation, landlords will be forbidden to let any properties found to have a poor Energy Performance Rating (F or G rated) after 2018.

‘The Green Deal is a prime opportunity for private landlords to prove they are able to self regulate and improve the energy efficiency of their properties. With over 4.5 million households currently renting private residential property, this will make a real difference to those who make their home in the sector, as well as helping landlords to future proof their properties,’ said David Salusbury, chairman of the NLA.

‘It is imperative that landlords assess whether their properties are eligible for a Green Deal grant. The Government has made it clear that there will be consequences for those who do not voluntarily improve the energy efficiency of their properties by a specific time, so there is no excuse not to comply with the cost neutral scheme,’ he added.

The organisation is launching an initiative, the NLA Green Deal, in February an all in one product that provides everything from initial assessment of a property, to finding a provider and installing the improvements.

‘Works can be completed during convenient periods and often at little disruption to the tenant. It’s a win-win situation and the NLA actively encourages all landlords to register their interest by visiting the NLA website,’ said Salusbury.

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